Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2021

HARLEYSVILLE, Pa.--()--Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.28 per share on the Company’s common stock. The cash dividend will be payable on August 18, 2021 to stockholders of record on August 4, 2021.

Net income for the third quarter was $1,582,000 or $.42 per diluted share compared to $1,611,000 or $.43 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2021 amounted to $5,738,000 or $1.52 per diluted share compared to $5,317,000 or $1.40 per diluted share for the same nine-month period a year ago. Net income for the nine months ended June 30, 2021 included SBA Paycheck Protection Program (PPP) fee income totaling $1,009,000 or $.27 per diluted share.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, “We are now over a year into the COVID-19 pandemic. The Bank has continued to maintain its prudent underwriting standards, invest in high credit quality assets, control our operating expenses and practice sound capital management. Our balance sheet is strong and through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) rounds 1 and 2 we were pleased to be able to provide $37.2 million of loans to 479 local small businesses. Additionally, loan origination fees recognized on the forgiveness of first round of PPP loans contributed to our earnings improvement in the first nine months. We anticipate that the majority of outstanding PPP loans will be forgiven by the end of the 2021 calendar year end.

We are cautiously optimistic that the burdens of the COVID-19 pandemic will continue to ease in the year ahead, and we will continue to remain focused on meeting our customers’ needs and ensuring the safety of our employees and supporting our communities.”

The Company’s assets totaled $904.7 million compared to $851.8 million a year ago. Stockholders’ tangible book value increased 4.1% to $21.61 per share from $20.76 a year ago.

Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL ( http://www.otcmarkets.com ) and is the holding company for Harleysville Bank. Established in 1915, Harleysville Bank is a Pennsylvania chartered and federally insured bank, headquartered in Harleysville, PA. The Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.

This presentation may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services.

Harleysville Financial Corporation
Selected Consolidated Financial Data as of June 30, 2021
(Dollars in thousands except per share data) Year-To-Date
( Unaudited) Nine Months Ended: Three Months Ended:
 
Selected Consolidated Earnings Data Jun 30,
2021
Jun 30,
2020
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Sept 30,
2020
Jun 30,
2020
Total interest income

$

20,768

 

$

22,464

 

$

6,628

 

$

6,980

 

$

7,160

 

$

7,156

 

$

7,216

 

Total interest expense

 

3,766

 

 

5,174

 

 

1,187

 

 

1,239

 

 

1,340

 

 

1,510

 

 

1,561

 

 
Net Interest Income

 

17,002

 

 

17,290

 

 

5,441

 

 

5,741

 

 

5,820

 

 

5,646

 

 

5,655

 

Provision for loan losses

 

295

 

 

657

 

 

105

 

 

95

 

 

95

 

 

154

 

 

353

 

Net Interest Income after Provision for Loan Losses

 

16,707

 

 

16,633

 

 

5,336

 

 

5,646

 

 

5,725

 

 

5,492

 

 

5,302

 

 
Gain on sales of loans

 

191

 

 

-

 

 

29

 

 

96

 

 

66

 

 

-

 

 

-

 

Bank owned life insurance

 

294

 

 

298

 

 

95

 

 

99

 

 

100

 

 

100

 

 

98

 

Other income

 

1,852

 

 

1,567

 

 

603

 

 

612

 

 

637

 

 

567

 

 

455

 

Total other expenses

 

11,228

 

 

11,441

 

 

3,928

 

 

3,706

 

 

3,594

 

 

3,847

 

 

3,700

 

 
Income before income taxes

 

7,816

 

 

7,057

 

 

2,135

 

 

2,747

 

 

2,934

 

 

2,312

 

 

2,155

 

Income tax expense

 

2,078

 

 

1,740

 

 

553

 

 

693

 

 

832

 

 

518

 

 

544

 

 
Net Income

$

5,738

 

$

5,317

 

$

1,582

 

$

2,054

 

$

2,102

 

$

1,794

 

$

1,611

 

 
 
Per Common Share Data
Basic earnings

$

1.53

 

$

1.41

 

$

0.42

 

$

0.55

 

$

0.56

 

$

0.48

 

$

0.43

 

Diluted earnings

$

1.52

 

$

1.40

 

$

0.42

 

$

0.54

 

$

0.56

 

$

0.48

 

$

0.43

 

Dividends

$

0.83

 

$

0.79

 

$

0.28

 

$

0.28

 

$

0.27

 

$

0.27

 

$

0.27

 

Tangible book value

$

21.61

 

$

20.76

 

$

21.61

 

$

21.50

 

$

21.23

 

$

20.96

 

$

20.76

 

Shares outstanding

 

3,741,307

 

 

3,747,052

 

 

3,741,307

 

 

3,743,203

 

 

3,745,058

 

 

3,752,221

 

 

3,747,052

 

Average shares outstanding - basic

 

3,748,527

 

 

3,763,454

 

 

3,744,305

 

 

3,748,385

 

 

3,752,787

 

 

3,749,350

 

 

3,744,957

 

Average shares outstanding - diluted

 

3,781,163

 

 

3,808,106

 

 

3,788,028

 

 

3,780,590

 

 

3,776,067

 

 

3,775,775

 

 

3,775,593

 

 
Harleysville Financial Corporation
Selected Consolidated Financial Data as of June 30, 2021
(Dollars in thousands except per share data) Year-To-Date
( Unaudited) Nine Months Ended: Three Months Ended:
Other Selected Consolidated Data Jun 30,
2021
Jun 30,
2020
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Sept 30,
2020
Jun 30,
2020
Return on average assets

 

0.87

%

 

0.89

%

 

0.69

%

 

0.93

%

 

0.98

%

 

0.83

%

 

0.78

%

Return on average equity

 

9.60

%

 

9.21

%

 

7.87

%

 

10.29

%

 

10.65

%

 

9.21

%

 

8.35

%

Net interest rate spread

 

2.46

%

 

2.77

%

 

2.29

%

 

2.49

%

 

2.61

%

 

2.52

%

 

2.63

%

Net yield on interest earning assets

 

2.61

%

 

2.95

%

 

2.44

%

 

2.64

%

 

2.76

%

 

2.69

%

 

2.80

%

Operating expenses to average assets

 

1.69

%

 

1.91

%

 

1.72

%

 

1.67

%

 

1.67

%

 

1.79

%

 

1.79

%

Efficiency ratio

 

58.64

%

 

59.73

%

 

63.98

%

 

57.44

%

 

54.82

%

 

60.94

%

 

59.60

%

Ratio of non-performing loans to total
assets at end of period

 

0.84

%

 

0.85

%

 

0.84

%

 

0.82

%

 

0.89

%

 

0.88

%

 

0.85

%

Loan loss reserve to total loans, net

 

0.95

%

 

0.83

%

 

0.95

%

 

0.92

%

 

0.87

%

 

0.87

%

 

0.83

%

Stockholders' equity to assets

 

8.94

%

 

9.13

%

 

8.94

%

 

8.90

%

 

9.11

%

 

9.20

%

 

9.13

%

 
 
Selected Consolidated Financial Data Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Sept 30,
2020
Jun 30,
2020
Total assets

$

904,670

 

$

904,515

 

$

873,410

 

$

854,876

 

$

851,821

 

Cash & investment securities

 

225,490

 

 

220,822

 

 

170,640

 

 

127,951

 

 

104,934

 

Mortgage-backed securities

 

76,177

 

 

71,683

 

 

70,895

 

 

81,851

 

 

93,970

 

Total Investments

 

301,667

 

 

292,505

 

 

241,535

 

 

209,802

 

 

198,904

 

Consumer Loans receivable

 

303,367

 

 

316,840

 

 

339,951

 

 

358,472

 

 

379,205

 

Commercial Loans receivable

 

267,925

 

 

262,177

 

 

258,898

 

 

253,698

 

 

240,485

 

Loan loss reserve

 

(5,422

)

 

(5,320

)

 

(5,235

)

 

(5,308

)

 

(5,167

)

Total Loans receivable net

 

565,870

 

 

573,697

 

 

593,614

 

 

606,862

 

 

614,523

 

Total Loans held for sale

 

192

 

 

939

 

 

720

 

 

-

 

 

-

 

FHLB stock

 

3,955

 

 

4,281

 

 

4,310

 

 

4,463

 

 

4,692

 

Checking accounts

 

269,246

 

 

270,878

 

 

257,227

 

 

231,068

 

 

226,921

 

Savings accounts

 

293,948

 

 

281,350

 

 

256,721

 

 

252,117

 

 

242,820

 

Certificate of deposit accounts

 

159,271

 

 

165,310

 

 

168,577

 

 

174,545

 

 

181,489

 

Total Deposits

 

722,465

 

 

717,538

 

 

682,525

 

 

657,730

 

 

651,230

 

Advances

 

89,357

 

 

95,043

 

 

100,173

 

 

109,684

 

 

109,781

 

Total stockholders' equity

 

80,845

 

 

80,467

 

 

79,524

 

 

78,631

 

 

77,780

 

 

 

Contacts

M. Shane Michalak
Senior Vice President/CFO
215-256-8828

Contacts

M. Shane Michalak
Senior Vice President/CFO
215-256-8828